Australian dairy can be cream of crop as global demand takes off

23 March 2018

Rene DeDoncker, The Australian
23 March 2018

It’s been quite a ride for Australian dairy over the past few years, characterised by supply and demand imbalances, currency fluctuations, and a reset of the domestic milk price that had reverberations throughout the industry. We’ve seen new dairy players emerge while others fade, and ongoing investment in a sector that many had written off as unprofitable in the wake of this market volatility.

Australian dairy can prosper, despite global volatility. It’s why Fonterra is investing significantly to increase our manufacturing capacity and grow Australia’s milk pool. But it isn’t growth for growth’s sake. There’s a world hungry for dairy and Australia can help feed it.

About 406 billion litres of dairy are consumed globally every year, and by 2020, that figure is expected to reach 465 billion litres — showing that demand is growing much faster than global supply. Countries such as Australia that produce more dairy than they need for domestic markets are well-placed to capture this demand. Fonterra is the world’s largest trader of dairy, with a presence in more than 100 markets.

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